Oleh/By : DATO' SERI DR. MAHATHIR BIN MOHAMAD
Tempat/Venue : DAYABUMI COMPLEX, KUALA LUMPUR (KL)
Tarikh/Date : 03/06/93
Tajuk/Title : THE LAUNCHING OF A SPECIAL
SUPPLEMENT ON MALAYSIA
I thank the organisers for this honour of addressing
the captains of industry and commerce and other leaders of
the private and public sectors in Malaysia.
2. I support this initiative to publicise worldwide
Malaysia's technological capability and capacity which to me
seems to be a well-kept secret. At a time when major
multinationals are in dire straits in their home countries,
their Malaysian operations are prospering. What is the
secret behind this success which is counter to worldwide
trend? I suspect it has something to do with the overall
Malaysian business environment and the high productivity
of its labour based on the trainability and technical
comptence of the workforce.
4. We have a simple but clear vision for Malaysia, namely
that by the year 2020, we want to be a developed nation
having the following attributes:
* A united nation with a sense of common and shared
destiny;
* A psychologically-liberated, secure and developed
Malaysian society;
* A mature democratic society;
* A fully moral and ethical society;
* A matured, liberal and tolerant society;
* A scientific and progressive society;
* A caring society with a caring culture;
* An economically just society; and
* A prosperous society.
5. Thus, one of the characteristics of Malaysia in the
year 2020 is a society that is scientifically progressive, a
society that is innovative and forward looking, one that is
not only a consumer of technology but also a contributor to
the scientific and technological civilisation. This vision
is not a dream. In fact, Malaysia had recognised the
importance of science and technology in development since
independence in 1957. The role of science and technology
has been enshrined in the Rukunegara and incorporated in her
educational programme. Thus, the development of primary and
secondary schools, universities and polytechnics has been
implemented with science as the key discipline in order to
produce skilled and competent scientific manpower. This, in
fact, has been realised and has borne fruits, as evidenced
by the rapid modern technology-based industrialisation of
Malaysia.
6. Further steps have been taken to prepare Malaysia not
only to be a consumer of technology but also a contributor
to new technologies and scientific discoveries. Research
has not been neglected in the universities. In fact, the
Government, through its funding programme via the
Intensification of Research in Priority Areas (IRPA)
mechanism, has provided a substantial fund for research in
the universities and research institutes.
7. Since independence, several institutes have been set up
for applied research which have contributed to the economic
development and industrialisation of the country. Further
strengthening of this development is facilitated by the
provision of policy guidelines such as the Industrial
Master Plan, the Technology Action Plan and Vision 2020.
The national R & D allocation is being increased, with an
anticipated doubling in the proportion of GDP between 1990
and 2000 (from 0.8 percent to 1.6 percent of GDP).
The private sector R & D is being stimulated through several
programmes, including direct grants, incentive schemes and
fiscal and monetary benefits.
8. Thus, with these developments not only has new knowledge
ledge been generated but highly trained personnel have and
are being produced to man the high technology-based
industries. Concurrent with science and technology
development, encouragement is given to Malaysians to be more
innovative and inventive and the first step is the passing
of the Patent Act in 1986 while the Industrial Design Act
is being prepared for Parliament. Thus, the intellectual
properties of Malaysians and the foreign investors alike
are protected, paving the way for the orderly transfer of
technology to Malaysia. Foreign investors can bring in their
technology freely with the knowledge that their technology
is protected in the country. Both government administration
and the NGOs are playing an active role in inculcating the
innovative culture through several activities including
the annual Inventors' Fair. Recently, Malaysian investors
participated at the Geneva Exhibition and five out of six
entries won medals, including one gold medal. All these
efforts in building up the scientific and technological
infrastructure, and competent scientific manpower are
directed to the success of science and technology-based
industries in the country. These industries reflect the
level of Malaysian technological capability.
9. Steps have also been taken to assist in the
commercialisation of scientific discoveries so as to nurture
the development of indigenous technology which, it is hoped,
will play an important role in giving Malaysian industry the
extra competitive edge. One of the steps taken is the
establishment of the Malaysian Technology Development
Corporation (MTDC) which seeks to assist in the
commercialisation of research and innovations developed in
the country. The Malaysian Invention and Industrial Design
Society, an NGO, also plays a role by recognising or
assisting inventors who require its support through
providing seed money, the preparation of a business plan for
submission to MTDC or the setting up of a venture capital
company. It must be noted that some inventors have already
been successful in developing commercially-viable products.
10. In support of this development, several critical
services have been strengthened. Malaysia's five year
plans have concentrated on building up infrastructure for
social, economic and industrial growth. These include
communications, transport, health and R & D. In the decade
between 1981 to 1990, Malaysia spent US$7.8 billion on
telecommunications alone, the biggest spender in South East
Asia and second only to Singapore on a per capita basis.
Started about ten years ago the Government has successfully
implemented an extensive privatisation policy. So far
highways, telecoms, railways, postal services, power
generation, ports and airports, to name some, have either
been corporatised or privatised. Competition is being
encouraged in order to stimulate rapid development at the
minimum cost to the consumers.
11. Political stability and a well-developed financial
mechanisms are among the most important conditions for
industrialisation to flourish. In Malaysia, both of these
conditions have been accorded high rating by world opinion.
12. All these steps have borne results in the form of
successful commercial ventures by both the local as well
as foreign entrepreneurs and foreign multinationals. It
is heartening to see the transition of Malaysia from
a commodity-based exporter to a producer and exporter of
manufactured products.
13. The electronics industry growth is probably the most
spectacular success that Malaysia has achieved in terms of
speed of growth and future potential. Beginning from 1972,
the industry has grown from almost nothing to become the
largest industrial activity of the country. The industry is
also undergoing rapid transformation from almost complete
concentration on semi-conductor components to a more
balanced mix of sub-assemblies and end products.
14. Several examples may be highlighted to illustrate the
success achieved, of which two are given here. Motorola
started with one plant in 1972 and is now in the process of
building its fifth. Beginning with mostly manual assembly,
it has progressed to automated assembly and testing using
largely local expertise. It now does wafer fabrication in a
specialised plant in Seremban. In another plant making
communications equipment, Motorola has an R & D team
of about 100 engineers involved in all aspects of
communications gear, from electronic circuits to mechanical
designs.
15. Intel is another success story that indicates the level
of sophistication achieved using local expertise. Nowadays,
most of Intel's most advanced microprocessors are assembled
and tested in Malaysia using automated equipment and
processes designed, fabricated and integrated locally.
A Micro-controller Design Centre has been started only a
year ago which has achieved several significant milestones
with the number of designers expected to reach 100 by the
end of 1993.
16. The telecommunications industry era can be considered
to have begun with the corporatisation of the
Government-owned Jabatan Telekom in 1986, followed by
privatisation in 1990. As a result, telecoms services have
become more wide-spread and reliable while advanced data
communication services are being offered or planned.
17. Competition has been introduced by the Government in
the provision of enhanced and advanced services. The rise
of the cellular telecommunication industry is a prime
example of what
can happen. The domestic cellular growth rate is more than
50 percent per annum, far higher than the rate for wired
services.
18. In the manufacturing area, Malaysian-owned companies
have succeeded in penetrating foreign markets for terminal
equipment as well as for infrastructure development.
19. Malaysia decided to undertake the project of producing
the country's first national car, the Proton Saga, in 1983.
The venture has been an overwhelming success, winning two
golds and one silver medal in 1988, and another two gold
medals in 1990 at the British International Motor Shows. It
obtained the vote of `the best value for money' car in a
British motoring magazine in 1991 and two more gold medals
alongside a Manufacturer's Excellence award for the new
sleek and aerodynamic Proton Iswara in 1992. It has just
introduced another model, the Proton Wira, and
technologically, it has progressed further by increasing
the number number of car components manufactured locally and
establishing comprehensive R & D facilities. Malaysia's
automobile industry is expanding and a second national car
is in advanced planning. Malaysian-owned assembly plants now
design and produce jigs for their own use and for export.
20. You will agree with me that we should tell the world
that Malaysia is an attractive centre for high technology-
based industries and that Malaysia is a good technological
partner for their continued competitiveness. In the true
spirit of Malaysia Incorporated, I hope the corporate sector
will play an active role in publicising our positive assets
and providing testimony to the actual situation in Malaysia.
We must also inform the world that besides Malaysia's
scientific and technological capabilities, the country also
provides other benefits and incentives, has a skilled
and scientifically competent manpower, and a workforce
with a positive work culture.
21. There are many fiscal incentives offered to companies
for upgrading technical capability of workers and for
product development as well as for the more basic-type
R & D. The Government is also removing restrictions on the
employment of foreign R & D personnel and technical
experts, although it pays to employ Malaysians, as
they are equally competent and cost less.
22. Finally, I am sure that many of our foreign investors
will be able to testify to the fact that Malaysia also
provides a peaceful and attractive place to live. Despite
having all the amenities of a developed country, the cost of
living here is very much lower than in developed countries.
23. I, therefore, strongly urge that you use the medium of
the Scientific American in its special supplement on
Malaysia to tell the WORLD about our technological capacity
and capability which can ensure business competitiveness
into the year 2020.
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